As the ink dried on the edict removing U.S. import tariffs from Mexican and Canadian steel and aluminum, U.S. President Donald Trump stunned NAFTA traders May 30 with the announcement of a major new trade war against Mexico. The program calls for implementation as of June 10 of a 5% import tariff on “all goods imported from Mexico”, with the stipulation that the duty rate will rise by five percentage points per month up to 25%. The tariffs are intended to force Mexico to stop the flow of migrants to the U.S. border, according to the president’s tweet. Mr. Trump has not yet released his plan to impose tariffs on FIFA to boost the USMNT’s ranking or punitive duties on the Kingdom of the North for intemperate behavior, but we presume these are on his ink blotter as we type. Continue reading Yeeee Haw, more tariffs!
After 22 years of lotus-eating reverie under NAFTA, North American supporters of free trade are now being terrorized by U.S. President Donald Trump and his campaign of tariff-driven protectionist mayhem. Media coverage of Trump’s trade war is focused on China, but Mexico is taking some lumps in this affair as well. The latest moves and counter-moves are taking place against a backdrop of the struggle to push the renegotiated NAFTA free trade agreement forward into law as the U.S. Mexico Canada Agreement, or USMCA. Here are some comments on the various moving parts at this juncture. Continue reading Mexico tied to bumper of U.S. trade wars
Mexico put an end to months of dire warnings, hand wringing and speculation on July 1 with a presidential election that appears to have taken place without large scale violence or tampering. To recapitulate, leftist candidate Andrés Manuel López Obrador won the election by a wide margin and the losing candidates conceded without delay. The election was widely covered in the international press so we will not go into the details here. We would, however, like to offer up some comments from our perspective on what’s happening during the five-month transition period before Mr. López Obrador is set for inauguration as Mexico’s next president on December 1. Continue reading López Obrador transition off and running